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Indonesia PMI January 2017

Indonesia: Manufacturing PMI returns to expansionary territory in January

February 1, 2017

Indonesia’s manufacturing industry returned to expansionary territory in January for the first time in four months. The Manufacturing Purchasing Managers’ Index rose from 49.0 in December to 50.4 in January, climbing above the 50-point threshold which indicates expansion in the manufacturing sector.

According to the release provided by Nikkei and IHS Markit, January’s reading was supported by an increase in order books related to successful marketing and improving client confidence. Meanwhile, jobs fell at the fastest rate in four months, largely as a result of technological progress in some factories. Also moderating January’s result was the ongoing fall in outstanding business, which decreased for the thirty-second consecutive month.

FocusEconomics Consensus Forecast panelists see manufacturing rising 4.9% in 2017, which is down 0.1 percentage points from last month’s estimate. For 2018, the panel also expects manufacturing to increase 4.9%.

Author:Christopher Thomas, Economist

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Indonesia Economic News

According to Statistics Indonesia, the country recorded a trade deficit of USD 2.0 billion in November, far larger than markets had expected and contrasting the USD 0.2 billion surplus registered in the same month last year.

Conditions in Indonesia’s manufacturing sector improved at a slower pace in November, according to the Purchasing Managers’ Index (PMI) released by IHS Markit and Nikkei, with the PMI decreasing from 50.5 in October to 50.4 in November—the third consecutive monthly decline.

According to Statistics Indonesia, the country recorded a trade deficit of USD 1.8 billion in October, larger than markets had expected and contrasting the USD 1.0 billion surplus registered in the same month last year.

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